Eight brand new units in a retail development - complete with established tenants all on long-term leases - in one of Auckland’s fastest growing commercial hubs have come to market, presenting opportunities for investors to secure strong, brand-new bottom-drawer investments, brokers say.
Eight units in the 1,119sqm retail complex on a 3,867 sqm site at 252 Oteha Valley Rd, Albany
are currently being marketed by Shoneet Chand
and Matt Prentice
of Colliers International. They are for sale individually by auction at 11am on 27 April at Colliers’ auction rooms at 151 Queen St, unless sold prior.
“Located in the heart of Albany City - alongside international-brand chains such as KFC and Carl’s Jr, as well as key amenities such as the Albany Park & Ride and Caltex service station - this exciting opportunity features eight different investment offerings in one of Auckland’s fastest-growing and most desirable commercial locations,” Chand says.
“Given low interest rates and a number of positive economic conditions, it is the perfect time for investors to look at including commercial property as part of their portfolio, and these offerings represent ideal passive or ‘bottom-drawer’ investment opportunities for all investors”.
“This is because of their location, the strength of the tenant covenants – including established national brands on long-term leases – and quality of the newly constructed buildings, reducing the likelihood of maintenance issues.”
Developed by established and successful property development company Aubrey Edward Group, the recently-completed units range in size from 76.5 sqm to 252 sqm, with net rentals per annum from $41,000 to $80,000, Chand says.
“Tenants include well-known national brand Liquor King - a division of Lion Liquor Retail Ltd, owned and managed by Lion, with over 39 stores nationwide, from Kaitaia to Dunedin.
“Other tenants include established companies Bodyworks, Daruma Sushi, Green Bay Fruit & Vege, Zambrero, Sunrise Bakery, Pizza Express and Shenyang BBQ.
“All tenants are on six to ten-year leases, with rights of renewal and strong rental growth, built-in guarantees and hard ratchet clauses, which means rent shall not reduce on review.
The units sit right in the centre of Albany City, a high-growth area which is currently experiencing significant commercial and residential development, Prentice says.
“The wider Albany City development is a major project to create a dynamic and sustainable sub-regional centre with the aim of bettering the economic and social wellbeing of the area as well as providing for future population growth.
“Expected population growth rates in Albany are significantly ahead of projections for both the Auckland region and the North Shore”.
“Higher-density housing is planned for Albany City, with 4000 people likely to be living there by 2021, and more than 15,000 people projected to be working within the area by then.”
The surrounding area has been designed to include a variety of living, employment, commercial, retail, community, civic and recreation environments, Prentice says.
“Distinctive high quality urban design is provided for, including a ‘green network’ to create an attractive urban environment.”
Overall, the Albany area has quickly become a proven and strong business location generally, Prentice says.
“Rapid development and low commercial vacancy rates reflect the demand among occupiers for premises in the suburb, with Colliers International’s latest research showing a low 2.9% vacancy rate across office property in Albany, and under 2% vacancy across Industrial property”.
“Motorway access, dedicated bus lanes and the large Park & Ride bus terminal further enhances the area’s accessibility for commuters and shoppers – making it an attractive location for businesses.”
Several major owners and developers have recognised the potential for further commercial development in the Albany basin based on expected future population growth, Prentice says.
“There is a significant amount of retirement, residential and commercial development underway in close proximity to this site.”